Delphi pension plan contribution short of requirement but allowed under Chapter 11

By Caroline Salls

Pittsburgh, Jan. 13 - Delphi Corp. contributed about $57 million to its U.S. pension plans sponsored by the company and some of its U.S. subsidiaries, well short of the $300 million payment due Friday, according to an 8-K filing with the Securities and Exchange Commission.

The Employee Retirement Income Security Act and the U.S. Internal Revenue Code set the contribution requirement.

As permitted under Chapter 11, however, Delphi contributed only the portion of the contribution attributable to post-bankruptcy-petition service, and the unpaid portion of the minimum funding payments remains payable as a claim against Delphi and will be determined in its plan of reorganization with other claims.

Delphi said it has appointed an independent fiduciary for all of its tax qualified defined benefit pension plans, and that person is charged with pursuing plan claims to recover minimum funding contributions.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.